Ho Chi Minh City is targeting a per capita income of US$8,500 for its residents by 2020, with the southern metro still the major economic growth driver for Vietnam, according to a new report on the government's website.

The city has recorded many achievements in the past 25 years, bringing about significant social changes for the southern region and the whole country, the report said, citing remarks from the Party Politburo.

It now accounts for 21.3 percent of Vietnam's gross domestic product and contributes 29.38 percent of the state revenues, according to the report.

The Politburo, however, said that the city has not reached its full potential yet, with many problems left unsolved including poor infrastructure, traffic congestion and pollution.

Party General Secretary Nguyen Phu Trong said Ho Chi Minh City is encouraged to propose and try out new solutions to deal with developments it will face along the way.

He also supported the city's plan to develop hi-tech industries and increase the income for its residents.

According to news website VnExpress, the targeted GDP per capita of Ho Chi Minh City is higher than that of Hanoi, which is $7,500, and the projected national average of between $3,000-3,500 for 2020.